Retirement
Planning for the third phase of retirement
BY  |  

Retirement planning for baby boomers has provided the foundation for significant growth in the financial services industry. It has underpinned service models, product solutions and growth outcomes.

But as baby boomers age, new models and strategies need to be considered.

The fundamentals of retirement planning advice must be reviewed against current issues arising from a population facing increasing longevity and issues of frailty, in combination with a regulatory environment increasingly focused on fee for service advice and value adding.

Advisers need to consider how well traditional financial planning strategies are positioned to address these issues and rethink the real-world needs of their clients.  Ultimately, they may need new thinking and a fresh approach to retirement planning, which incorporates aged care needs associated with the frailty years.

At a time when many have described the financial advice sector as reeling, and some advisers are saying they feel afraid about the future, there's a good news story emerging from the wreckage - aged care advice.

The white knight of the financial advice industry may not be overtly sexy, but it's steady, reliable and growing - both in consumer demand and profitability.

Over the last few decades, the focus has been on the wealth accumulation of the baby boomers and Generation X, while intergenerational wealth transfer and aged care advice have largely been forgotten.

Over the next two decades, we are likely to see a funds outflow from baby boomer clients, with a projected $3 trillion of wealth to be passed on to the next generation.

This will necessitate a shift in focus as advice professionals adapt services and business models to participate in this 'great wealth transfer' wave with value-add services that protect funds under advice and capture opportunities to grow businesses.

Link to something QANpiMkY